Regulatory Assets and Liabilities

12 Months Ended

Dec. 31, 2024

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets and Liabilities

Regulatory assets and liabilities are created for amounts that regulators may allow to be collected or may require to be paid back to customers in future electric and natural gas rates. Xcel Energy would be required to recognize the write-off of regulatory assets and liabilities in net income or other comprehensive income if changes in the utility industry no longer allow for the application of regulatory accounting guidance under GAAP.

Components of regulatory assets:

(Millions of Dollars)	See Note(s)	Remaining Amortization Period	Dec. 31, 2024				Dec. 31, 2023
Regulatory Assets			Current		Noncurrent		Current		Noncurrent
Pension and retiree medical obligations	11	Various	$	39	$	1,167	$	27	$	1,106
Net AROs	1, 12	Various	—		387		—		316
Recoverable deferred taxes on AFUDC		Plant lives	—		368		—		332
Depreciation differences		Various	17		250		17		189
Excess deferred taxes — TCJA	7	Various	10		184		10		198
MISO capacity revenue tracker		One to two years	63		45		36		26
Environmental remediation costs	1, 12	Various	13		39		15		94
Prairie Island extended power uprate		10 years	4		34		4		38
Conservation programs (a)	1	One to two years	20		30		19		54
Purchased power contract costs		Term of related contract	5		28		4		40
Benson biomass PPA termination and asset purchase		Four years	10		26		10		36
Deferred natural gas, electric, steam energy/fuel costs		One to two years	99		25		239		80
Sales true-up and revenue decoupling		Various	60		23		7		33
Nuclear refueling outage costs	1	One to two years	51		20		43		19
Gas pipeline inspection and remediation costs		One to two years	47		9		40		25
Renewable resources and environmental initiatives		One to two years	34		4		38		5
Other		Various	89		210		102		207
Total regulatory assets			$	561	$	2,849	$	611	$	2,798

(a)Includes costs for conservation programs, as well as incentives allowed in certain jurisdictions.

Components of regulatory liabilities:

(Millions of Dollars)	See Note(s)	Remaining Amortization Period	Dec. 31, 2024				Dec. 31, 2023
Regulatory Liabilities			Current		Noncurrent		Current		Noncurrent
Deferred income tax adjustments and TCJA refunds (a)	7	Various	$	7	$	2,888	$	7	$	3,015
Plant removal costs	1, 12	Various	—		2,208		—		1,984
Effects of regulation on employee benefit costs (b)	11	Various	—		259		—		253
Renewable resources and environmental initiatives		Various	16		232		9		188
Net AROs (c)		Various	—		161		—		90
ITC deferrals	1	Various	—		70		1		60
IRA deferral		One to three years	3		37		—		—
Deferred natural gas, electric, steam energy/fuel costs		One to two years	480		12		220		—
Contract valuation adjustments (d)	1, 10	Less than one year	89		—		56		—
Conservation programs (e)	1	Less than one year	52		—		47		—
Other		Various	205		143		188		237
Total regulatory liabilities (f)			$	852	$	6,010	$	528	$	5,827

(a)Includes the revaluation of recoverable/regulated plant ADIT and revaluation impact of non-plant ADIT due to the TCJA.

(b)Includes regulatory amortization and certain 2018 TCJA benefits approved by the CPUC to offset the PSCo prepaid pension asset.

(c)Includes amounts recorded for future recovery of AROs, less amounts recovered through nuclear decommissioning accruals and gains from decommissioning investments.

(d)Includes the fair value of FTR instruments utilized/intended to offset the impacts of transmission system congestion.

(e)Includes costs for conservation programs, as well as incentives allowed in certain jurisdictions..

(f)Revenue subject to refund of $3 million and $187 million for 2024 and 2023, respectively, is included in other current liabilities.

Xcel Energy’s regulatory assets not earning a return include past expenditures of $892 million and $1,085 million at Dec. 31, 2024 and 2023 respectively, which predominately relate to purchased natural gas and electric energy costs (including certain costs related to Winter Storm Uri), sales true-up and revenue decoupling, various renewable resources/environmental initiatives and certain prepaid pension amounts. Additionally, the unfunded portion of pension and retiree medical obligations and net AROs (i.e. deferrals for which cash has not been disbursed) do not earn a return.